People in the region will have to shell out more for savouring a glass of milk, as the State milk cooperatives of Punjab and Haryana, Milkfed and Vita respectively, has decided to raise the milk prices.
While the Vita has already indicated to enforce the increased rates from June 1, Milkfed is yet to make an official announcement in this regard. From June 1, Haryana residents will pay Rs two more to buy a litre milk. The prices of milk products would also be increased.
On the other hand, the consumers in Punjab, Chandigarh, and a few places in Himachal Pradesh would face a hike in milk prices by Rs one or two per litre from next month, amid rising input costs.
“Hike in milk price has become absolutely necessary as there is an increase in overall input cost and shortage of milk is also being felt (during summer season). Moreover, we are also supplying milk at much lower rate (than other milk producers),” said Punjab State Cooperative Milk Producers Federation (MilkFed Punjab) managing director Alaknanda Dyal on Wednesday.
Though she refused to divulge quantum of increase in retail milk rate to be made, official sources said that milk prices are expected to be jacked up by Rs one or Rs two per litre.
“Our milk price increase will be lesser than what Mother Dairy had raised few days ago,” Dyal said. Mother Dairy has increased milk prices by up to Rs three per litre in Delhi and NCR region.
In contrast, Haryana Cooperation Minister Satpal Sangwan said that after the revised rates of milk, people will have to pay Rs 38 per liter for full cream milk instead of earlier Rs 36 per litre. Similarly, the prices of skimmed milk are now Rs 35 per litre instead of Rs 33 per liter, for tonned milk Rs 32 per liter instead of Rs 30 and for double tonned milk Rs 28 instead of Rs 26. Haryana Dairy Development Cooperative Federation has increased milk procurement prices in the State by Rs 30 per kg of fat for its milk production.
Revised prices to milk producers will be Rs 450 per kg fats from June 1, average fat of 6.5 per cent increase, in rates approximately Rs two per kg milk. In addition, Federation has also decided to give incentive Rs 50 per kg of fat to the milk producers, which comes Rs two to Rs 3.25 per liter approximately of milk as competition of respective area.
With this, the Federation will pay approximately Rs 3.25 crore per month as additional milk price for the milk procured during the season. “This will be highest amount for milk procurement so far”, added Sangwan. Milkfed, which sells milk under Verka brand, has raised milk procurement prices by Rs 30 per kg fat during last month for milk producers in order to boost milk supply. “Milkfed is paying Rs 410-420 per kg fat to dairy farmers as against earlier rate of Rs 370-390 per kg fat,” an official said.
The ongoing intense hot conditions prevailing in northern region has also taken a toll on the availability of milk with Milkfed’s daily milk procurement dipping by seven to eight per cent as compared to milk purchase in the month of April.
“Our daily milk procurement is at present 10.50 lakh litres a day as against 11.55 lakh litres in the month of April,” an official said. “Because of heat stress during summer, the milk production usually goes down considerably,” he added.
Meanwhile, commercial dairy farmers have sought substantial hike in milk procurement prices from Milkfed to which they supply about three lakh litres a day. “The present milk procurement prices are grossly insufficient to cover our cost...we demand prices be raised to Rs 510 per kg fat as done by Rajasthan State,” said Punjab Progressive Dairy Farmers Association, Daljeet Singh said.
“Our input cost has increased by Rs six per litre of milk. Therefore, MilkFed is required to raise retail rate by at least Rs four per litre to cover the cost,” he said.
Dairy farmers further said that with price of skimmed milk powder (SMP) going up sharply to Rs 190-200 per kg, the Milkfed, which has about 5,000 tonne of SMP in its stock, should think over paying higher rates which could enable farmers to sustain their venture.
Milkfed, which is the biggest player in the organised dairy market in Punjab, gets milk from about four lakh small and big farmers.